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Belgium-based insurer Ageas will take full ownership of the Portuguese non-life activities of its joint venture with MBCP.

Ageas will pay €122.5 million to acquire a 49 percent stake in Médis and Ocidental Seguros as part of its aim to develop its non-life activities.

Both parties agreed to upstream €290 million in the form of dividends and capital reduction while maintaining the solvency levels of Millenniumbcp Ageas above 200 percent. The total operation is expected to be cash accretive for Ageas.

The transaction includes a one-off price adjustment after four years to reflect actual versus projected commercial performance through the MBCP network. The transaction is subject to regulatory approval.

In 2013, the non-life activity posted gross inflows of €251 million, with the private health insurance provider Médis representing the largest activity. The Non-Life activities reported a profit of €12 million on a 100 percent basis.

Bart De Smet, chief executive officer of Ageas, said: "This transaction ticks a number of boxes for Ageas. First and foremost it aligns perfectly with our Vision 2015 plan and our stated ambition to increase the Group's presence in non-life but thanks to retaining higher net profit levels and through active capital management, Ageas is taking a further step forward towards realising its 11 percent insurance ROE target in 2015.

“Portugal is a market that we know well, and is characterised by still low penetration rates. With our track record of very low combined ratios, we believe this market represents a promising opportunity for our Group. MBCP will continue to be an important distribution partner for our life and non-life activities. At the same time it creates an opportunity to expand our distribution reach in non-life beyond the current channels."